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Derin Clark

Derin Clark

Online Reporter
Published: 18/02/2021

ISA season is only weeks away but savers hoping to start seeing rates increase will be disappointed with data released this week, which found that ISA rates remain at record lows. There were no changes at the top of the ISA charts this week and, as a result, savers looking to lock into a fixed rate ISA will find that the top rate currently stands at 1.30% AER, while those looking for an easy access ISA can get the best rate of 0.60% AER.

Savers should also note that the rates below are the best rates available at 12.30pm on Thursday 18 February 2021 and, although correct at the time of publishing, they may not be available after this time.

The best fixed rate ISA savings rates

Provider Account Term Rate AER
Gatehouse Bank 5 Year Fixed Term Green Cash ISA Five years 1.30% (expected profit rate)
Gatehouse Bank 3 Year Fixed Term Green Cash ISA Three years 0.90% (expected profit rate)
Gatehouse Bank 2 Year Fixed Term Green Cash ISA Two years 0.80% (expected profit rate)
Al Rayan Bank Fixed Term Deposit Cash ISA 12 months 0.65% (expected profit rate)

 

Gatehouse Bank continued to dominate the fixed rate ISA chart this week, paying the best rate in the five, three and two year fixed ISA charts. Its 5 Year Fixed Term Green Cash ISA tops the chart overall, paying an expected profit rate of 1.30% gross on anniversary. Meanwhile, its 3 Year Fixed Rate Cash ISA topped the three year chart paying an expected profit rate of 0.90% gross on anniversary and its 2 Year Fixed Term Green Cash ISA topped the two year chart paying an expected profit rate of 0.80% gross on anniversary. All these ISAs require a £1,000 minimum deposit to open. They benefit from Gatehouse Bank planting a tree in a UK woodland when an account is opened and funded, and the trees are planted in UK woodland projects certified by the UK Government’s Woodland Carbon Code. These ISAs accept transfers in. They must be opened and managed online.

The best one year fixed ISA rate this week came from Al Rayan Bank, which pays an expected profit rate of 0.65% gross quarterly on its Fixed Term Deposit Cash ISA. It requires a £1,000 minimum deposit to open. Transfers in are accepted for up to 30 days from account opening. This ISA can be opened online, in branch, by post, or via mobile app, and it can then be managed online, in branch, by post, by phone, and via mobile app.

Compare the best fixed rate ISAs

The best easy access ISA rates

Provider Account Notice Rate AER
Al Rayan Bank Instant Access Cash ISA (Issue 2) Instant 0.60% (expected profit rate)
Cynergy Bank
Virgin Money
Online ISA (Issue 9)
Easy Access Cash ISA Exclusive Issue 1
None
Instant
0.50%
0.50%
Ecology Building Society Ecology Cash ISA None 0.45%

 

Topping the easy access ISA chart this week was Al Rayan Bank, which pays an expected profit rate of 0.60% gross monthly on its Instant Access Cash ISA (Issue 2). This ISA allows further additions and withdrawals. Transfers in are accepted. It can be opened online, in branch, by post, by phone and via mobile app.

Both Cynergy Bank and Virgin Money had the next-best easy access ISA rate. Cynergy Bank pays 0.50% gross yearly on its Online ISA (Issue 9). This ISA requires a £1 minimum deposit to open and a Cynergy Bank Authenticator App or Digipass is also needed to open and manage the account. It allows further additions and withdrawals. Transfers in from cash ISAs are accepted but must be made on account opening. It can only be opened and managed online. Virgin Money also pays 0.50% gross yearly on its Easy Access Cash ISA Exclusive Issue 1, which is available to new and existing Virgin Money, Clydesdale Bank or Yorkshire Bank current account customers from 4.12.19. No minimum deposit is needed to open this account. It allows both further additions and withdrawals. Transfers in are accepted. The ISA can be opened online or in branch and then managed online, in branch, by post, by phone and via mobile app, and has the benefit of flexible ISA status, allowing money to be withdrawn and replaced in the same tax year without it counting any further towards your annual ISA allowance. Tipton & Coseley Building Society also pays 0.50% gross yearly on its Branch ISA (Issue 4), but this ISA is only available to those living within select postcodes.

Paying the third-best easy access ISA rate this week was Ecology Building Society. Ecology Building Society pays 0.45% gross yearly on its Ecology Cash ISA, which requires a £25 minimum deposit to open. Further additions and withdrawals are permitted subject to a minimum amount of £25. Transfers in are not accepted. This ISA must be opened by post but can then be managed online and by post. Residents in Northern Ireland also have the option of Progressive Building Society’s Cash ISA Saver, which pays 0.45% gross yearly.

Compare the best easy access ISAs

The best notice ISA rates

Provider Account Notice Rate AER
Marsden Building Society Branch Cash ISA 95 (Issue 2) 95 days 0.55%
Aldermore 30 Day Notice Cash ISA Issue 11 30 days 0.40%
Kent Reliance Cash ISA - 60 Day Notice - Issue 25 60 days 0.35%

 

Remaining at the top of the notice ISA chart this week was Marsden Building Society paying 0.55% gross yearly on deposits of £5,000. This ISA also pays a higher rate of 0.65% gross on deposits of £25,000 and a lower rate of 0.45% gross on deposits of £1,000. It allows further additions. Withdrawals can be made subject to 95 days’ notice, or if notice is not given, earlier access is permitted on closure only and subject to 95 days’ loss of interest. Transfers in from cash ISAs are accepted. This ISA must be opened and managed in branch.

The next-best notice ISA rate came from Aldermore, which pays 0.40% gross on anniversary on its 30 Day Notice Cash ISA Issue 11. This ISA requires a £1,000 minimum deposit to open. It allows further additions. Withdrawals are permitted subject to 30 days’ notice or, if notice is not given, earlier access is allowed subject to 30 days’ loss of interest. Transfers in are accepted. This ISA can only be opened and managed online. There is also a version of this ISA that pays interest monthly at the same gross rate. It also has the benefit of flexible ISA status, allowing money to be withdrawn and replaced in the same tax year without it counting any further towards your annual ISA allowance.

Kent Reliance had the third-best ISA rate this week paying 0.35% gross yearly on its Cash ISA – 60 Day Notice – Issue 25, which requires a £1,000 minimum deposit to open. This ISA allows further additions and withdrawals can be made subject to 60 days’ notice. If notice is not given, earlier access is permitted on 60 days’ loss of interest. The withdrawal method is dependent on how the account was opened. Transfers in are accepted but transfer requests must be made within 30 days of account opening. This ISA can be opened online, in branch or by post and then managed online, in branch, by post and by phone. Kent Reliance also has a version of this ISA that pays interest monthly at the same gross rate.

Compare the best notice ISAs

Disclaimer

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